Helping my dad with his retirement plans
So my dad is 76. He sold his pizza shop business last year for not much more than he paid 25 years ago just to be able to stop working.
He owns 2 houses in Pennsylvania 450k each
We live in 1 and the other he gets 2k monthly rent
1 condo in Miami worth 400k I think but he keeps inflating how much he thinks it’s worth but I checked Zillow (he pays 2k fees a month I think,all the condos were bad investments)
And selling 3 other condos for 900k which he bought for 550k meaning he’ll owe capital gains on 350k this year unless he reinvests it.
(I wish my dad knew about stocks but he was under the impression that you can lose everything with it.)
His idea is to buy a property for 900k and put 500k into it turning it into a 1.4m project that he can rent 3 stores out to and 1 garage. (I’ve never seen the property but I think it’s like a strip with a big lot) anyways he says pessimistically he can rent 3 stores at 2k each (3k ideally) and 1k for the garage. I don’t think this is a good idea bc he wants to take 200k mortgage from the 2 houses. And if it really is not that much return yearly. (But I think I’m forgetting that he can sell it at the end and have his money back ?)
Also all the work and 2-3 months of repairs .
This is his idea and I think it isn’t great. But I think it’s more work and investing in stocks would give him the same if not better returns without having to take out a mortgage. He is stubborn but I’m just thinking who do I go to for them to break this all down to my dad bc he does not understand when I try to tell him. (Also personally I think there will be some market correction and not go straight up so it’s tricky since he would need to invest without knowing when a good time is and in a little worried if he invests now he would blame me hard)
He likes the idea of getting 100k a year from this real estate investment
He doesn’t like the idea of paying taxes on the capital gains. But I believe it’s better to pay upfront and have an easier retirement. I also told him to sell the Miami condo rather than the house but he obviously wants to be able to use it now . Which I think he will start using it . he gets social security and the rent money my dad can live off withdrawing 50k a year if he invests that 900k minus taxes right?
I’m 26f . My siblings aren’t interested in trying to figure this out. I think for me my key question I want to know is 1 so he chooses to invest in stocks where do I go for him to see the breakdown. Also if anyone thinks that I’m missing something bc I think that is the best option vs real estate